Mubasher: Cisco Systems announced on Monday that it has reached an agreement to acquire BroadSoft for $1.9 billion, CNBC reported.

The world’s largest networking gear manufacturer would pay $55 per share, in cash, the news network noted, adding that BroadSoft shares had closed at $54.90 on Friday.

The deal allows Cisco to further diversify away from its stagnating switches and routers business by giving it a stronger foothold in selling unified communications software to big telecommunications firms.

Cisco CEO Chuck Robbins told CNBC that the deal will help Cisco's enterprise clients and small businesses connect better with consumers.

The BroadSoft deal would be Cisco's second major acquisition this year following the $3.7 billion acquisition of privately held AppDynamics in March.

“This is a smart acquisition that gives Cisco more firepower to sell into its massive installed base over the coming years,” Daniel Ives, chief strategy officer at GBH Insights told Reuters, adding that “we see minimal regulatory headwinds and also think this is the start to what could be a major wave of technology and telecommunication mergers and acquisitions in 2018.”

Reuters first reported two months ago that BroadSoft was exploring a sale. The news agency said today that the offer price is more than 25% higher than where BroadSoft shares were trading before it reported on 30 August that the company was exploring a potential sale.